Prime Money Market Fund
Capitalizing on the prime opportunity
SEC amendments to Rule 2a-7 have spurred growing demand for government MMFs, resulting in a move away from prime MMFs. However, greater confidence in the operational stability of prime funds – along with increasingly attractive spreads – is compelling investors to reconsider prime.
3 REASONS TO RECONSIDER PRIME NOW
Compelling yield differential
Robust demand for government MMFs is forcing yields lower, while reduced demand for prime MMFs is pushing yields higher, creating historically attractive spreads.
Aligned interests with investors
At J.P. Morgan, our portfolio managers actively manage liquidity well above the 30% weekly liquid assets threshold for fees and gates.
Additionally, a rigorous focus on risk management and credit analysis play a critical role in keeping FNAV movement to a narrow band.
Prime MMFs remain as easy to use as their government counterparts.